Sprint to unveil LTE network, stop selling WiMAX devices
Operator will not offer devices that are compatible with partner Clearwire\'s network beyond 2012.
Sprint Nextel Corp said it will introduce its own fourth-generation network next year using a standard known as Long Term Evolution, a move that puts the company in-line with rivals but deals a big blow to partner Clearwire Corp.
Sprint is in talks with Clearwire about the companies\' future together, and wo\'t be announcing anything more on that topic, said Steve Elfman, the company\'s president of network operations. A Sprint spokesman said the carrier wo\'t sell devices using Clearwire\'s WiMax technology after 2012 but will continue to support devices using the technology after that.
The announcement, made Friday at a conference in New York, suggests Sprint is distancing itself from Clearwire. Sprint, though, wo\'t be able to go too far yet. The Overland Park, Kan., company owns 54 percent of Clearwire and is committed to paying the company just over $1 billion to use its network in the future.
Nonetheless, Sprint\'s seemingly fading support raises questions about Clearwire\'s prospects, which was reflected in the markets Friday. Shares of Clearwire, down 76 percent over the past year, fell as much as 29 percent in volatile trading that was repeatedly halted because the stock kept tripping single-stock circuit breakers.
Clearwire representatives were unavailable for comment. Sprint shares, down 27 percent in 2011, recently rose 3.1 percent to $3.10.
Elfman said he expected the first Sprint markets with 4G LTE technology will be available in 2012 and the buildout should be complete by 2013 nationwide.
Sprint also said it expected users of the Apple Inc. iPhone would be among the most profitable on the company\'s network, despite the company having to pay higher subsidies for each handset. Carrier officials also expect the iPhone to cut down on lost subscribers.
Sprint began selling preorders of the top-selling device for the first time Friday.
Chief Executive Dan Hesse said he expected that iPhone users would be among the most profitable on the company\'s network, despite higher subsidies for each handset.